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Talk of Yang Ming joining the ranks of mega boxship owners
TAIWANESE container shipping line Yang Ming is reported to be on the verge of placing an order for ultra-large container vessels (ULCVs).
The unconfirmed reports follow industry rumours that Hyundai Merchant Marine (HMM) was about to follow in the footsteps of CMA CGM and MSC by ordering 14 22,000 TEU vessels.
However, HMM has since denied the reports and Yang Ming has yet to respond to media enquiries, reported The Loadstar of UK.
It is most unlikely that HMM would order new ULCVs based on the fact that it is only a slot charterer on 2M's Asia-Europe trade, where ships with capacities of at least 18,000 TEU are the new normal.
As for Yang Ming, its ocean liner partners in THE Alliance appear to be reluctant to deploy ULCVs.
Indeed, Hapag-Lloyd acquired its six 18,000 TEU and ten 15,000 TEU vessels through its takeover of UASC and has since said that it has "no plans" to order any new vessels.
Chief executive Jeremy Nixon of the soon-to-be-merged Japanese ocean liners "K" Line, MOL and NYK, is also not a fan of mega-sized box ships. At the TPM Asia conference in October, he said: "I am not convinced by the big ships. I don't believe that is the way forward."
Last year, consultant Drewry undertook a simulation study on the operational and financial impact on stakeholders in the supply chain, including terminal operators and ports, as ship sizes grew above 18,000 TEU.
It said: "The study found that scale economies from mega-ships only work for the total supply chain if terminals can increase productivity in line with increases in vessel size."
Its analysis found that the total system cost savings between an 8,000 TEU and a 16,000 TEU vessel "peak at only five per cent of total network costs and economies of scale decline as vessel sizes rise beyond 18,000 TEU."
The unconfirmed reports follow industry rumours that Hyundai Merchant Marine (HMM) was about to follow in the footsteps of CMA CGM and MSC by ordering 14 22,000 TEU vessels.
However, HMM has since denied the reports and Yang Ming has yet to respond to media enquiries, reported The Loadstar of UK.
It is most unlikely that HMM would order new ULCVs based on the fact that it is only a slot charterer on 2M's Asia-Europe trade, where ships with capacities of at least 18,000 TEU are the new normal.
As for Yang Ming, its ocean liner partners in THE Alliance appear to be reluctant to deploy ULCVs.
Indeed, Hapag-Lloyd acquired its six 18,000 TEU and ten 15,000 TEU vessels through its takeover of UASC and has since said that it has "no plans" to order any new vessels.
Chief executive Jeremy Nixon of the soon-to-be-merged Japanese ocean liners "K" Line, MOL and NYK, is also not a fan of mega-sized box ships. At the TPM Asia conference in October, he said: "I am not convinced by the big ships. I don't believe that is the way forward."
Last year, consultant Drewry undertook a simulation study on the operational and financial impact on stakeholders in the supply chain, including terminal operators and ports, as ship sizes grew above 18,000 TEU.
It said: "The study found that scale economies from mega-ships only work for the total supply chain if terminals can increase productivity in line with increases in vessel size."
Its analysis found that the total system cost savings between an 8,000 TEU and a 16,000 TEU vessel "peak at only five per cent of total network costs and economies of scale decline as vessel sizes rise beyond 18,000 TEU."
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